See the gain, total return, and yearly return on any investment, all in one place.
Calculates both the simple percentage gain and the annualized (CAGR) equivalent, so you can see both views at once.
Gain: Current value − Invested
CAGR: (Current ÷ Invested)^(1/years) − 1
The investment return calculator gives three answers at once for a single investment: the rupee gain, the absolute return percentage and the annualized return, or CAGR. You enter what you invested, what it is worth now and how long you have held it.
Each figure answers a different question. The gain tells you how much money you made. The absolute return tells you how much that is relative to what you put in. The CAGR tells you how fast your money grew each year. Seeing all three side by side prevents the most common misreading of returns, which is to confuse a big total with a strong yearly pace.
It suits a quick review of one holding, such as a fixed-term bond, a stock or a lump-sum fund investment.
1. Note the amount invested I, the current value V and the holding period t in years.
2. Gain = V − I.
3. Absolute return = (V − I) ÷ I × 100.
4. Annualized return (CAGR) = ((V ÷ I)^(1/t) − 1) × 100.
5. Check: I × (1 + CAGR ÷ 100)ᵗ should equal V.
6. Compare the CAGR, not the absolute return, with FD rates or fund benchmarks.
All three come from the same growth multiple, V ÷ I. The gain is I × (multiple − 1). The absolute return is (multiple − 1) as a percentage. The CAGR is the tth root of the multiple, minus 1. For a one-year holding, the absolute return and CAGR are identical. For longer holdings, the CAGR is always smaller than the absolute return divided by t when the investment has gained, because compounding does part of the work. For holdings under a year, CAGR exceeds absolute return.
If you want to know how much tax you might owe or how much you can spend, look at the gain. If you want to tell someone how much your money grew, the absolute return is easy to understand. If you want to judge whether the investment beat an FD, inflation or an index over the same time, only CAGR is fair. A 60% absolute return sounds impressive, but over eight years it is under 6% a year, which may not have beaten a bank deposit.
These formulas assume one amount invested at the start and nothing added or taken out. If you added money along the way, the invested total overstates how long your money was at work, and the CAGR will understate your real performance. If you received dividends or interest that you did not reinvest, add them to the current value, or the return will look worse than it was. For multiple transactions, use XIRR.
Gopal bought units of an index fund for ₹4,00,000 four years ago as a single investment, and they are worth ₹5,60,000 today.
Answer: Gain ₹1,60,000; Absolute return 40%; Annualized return (CAGR) 8.78%
Quoting the absolute return as if it were a yearly figure.
Comparing the absolute return of a four-year holding with a one-year FD rate.
Forgetting dividends or interest received in cash.
Using this for a SIP or a portfolio with several top-ups.
Entering the holding period rounded to whole years for a short investment, which distorts the CAGR.
Reviewing a lump-sum investment before deciding whether to hold or sell.
Explaining an investment's performance in several ways to a family member.
Comparing a matured bond or deposit with what an index fund did.
Preparing notes on capital gains before filing returns.
Which figure should I focus on?
CAGR is the fairer number to use when comparing investments held for different lengths of time. Absolute return and gain are easier to understand for just one investment.